AutoZone. Greg Buzek. Founder & President. IHL Consulting G

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Managing Your New Telecom Network October 4,
2007
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Introductions

• Ken Brame
• CIO
• AutoZone
• Greg Buzek
• Founder President
• IHL Consulting Group
• Paul Salzinger
• Director, Business Development
• New Edge Networks

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New Edge Networks

• Owns and manages a nationwide data network
• Largest Nationwide DSL Frame Relay footprint
• Providing secure, multi-location, networks
• Connectivity packages and transport solutions
  VPN and MPLS
• Focus on retail networks 350 networks
  implemented
• EarthLinks Business Division

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Partial Retail Customer List
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Key Trends in Retail Networks

• Networks are not an option anymore
•   
• Network Trend - Dial to Net VPN, Frame to MPLS
•  
• 50 of all retailers are running networks in
  real-time
• Multiple applications driving the need for higher
  performance networks
• Voice and data convergence
• Prioritize network application traffic
• Optimize use of bandwidth
• Ensure applications perform as expected
• Not all networks are created equal

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Swing to Private Networks

• Key Drivers
• Easier to manage
• Support latency sensitive applications via class
  of service (COS)

Source Forrester Report Enterprise VPN Adoption
in 2006
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Drivers for a Real-Time Network

• IP devices now penetrate all aspects retail
  operations
• Cash Registers
• ATM Machines
• Lotto Machines
• Equip. monitoring
• Self Service Kiosks
• Video cameras
• RFID tags
• Wireless kiosks
• Phones
• Plasma screens
• Gift / loyalty cards
• Video games
• Wireless stations
• Music services

• Business Intelligence drives competitive
  advantage
• Real time inventory management
• Workforce management
• Video surveillance
• Store traffic monitoring
• Supply chain management
• Loyalty cards
• Scheduling

• Management Tools
• Training distribution
• E-Mail for all
• Tank monitoring
• Revenue reporting
• Back-Office
• Ordering pricing
• Controlled Internet access

• Faster Transactions
• Credit Cards
• Check Cashing
• Loyalty Cards
• Gift Cards
• ATM transactions
• Debit Cards

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My Network Checklist

• Network Planning Phase
• What do we need?
• Pre-Qualification
• What can we get?
• Vendor Selection
• Who should we consider?
• Vendor Proposal Evaluation
• Picking the best partner?
• Building a Business Case
• Justifying our network?

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Network Planning Phase
My Network Checklist

• Applications Today and tomorrow -
  prioritization
• Network management capabilities
• Need for staffing, budget, firewall management
• Private or Public Network
• PCI requirements
• Network design hub spoke vs.fully meshed
• Internet access for the stores - Limited or
  full access
• POS hardware IP Enabled
• Static or dynamic IPs device management
• Bandwidth needs

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Pre-Qualification / Vendor Selection
My Network Checklist

•  Pre-Qualification Phase
• Correct location list and phone numbers (no PBX
  or alarm lines)
• Specify locations where services needs to be
  installed
• Determine what wiring services may be required
•  
• Vendor Selection Companies to engage
• Footprint/ coverage/ facilities
• Products and services
• Financial soundness
• Project / Account management
• Eco-System Partners -CC SW vendors

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Vendor Proposal Evaluation
My Network Checklist

• Coverage
• Products Services
• Additional value added services
• Network Management Interfaces
• Price to install
• Monthly Cost (MRC)
• Clear Billing Process samples
• Process for Moves, Adds and Changes
• SLAs what should you expect?
• DR What is available? Dial-back-up, redundant
  circuits

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Building a Business Case - (internal selling)
My Network Checklist

• Reduction of phone line cost
• Lowering cost on credit card processing
• (Dial-up typically more expensive per
  transaction)
• Value of real time data / reporting
• Lower FedEx and faxing costs
• Lower IT staff costs with network managed by
  vendor
• Increased revenues from new product availability
• Fast Payments and More Selection Better
  Customer Experience More Revenue

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• Ken Brame
• CIO

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• Greg Buzek
• Founder President

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Private vs. Public Networks
CPE Based Internet VPNs Pros -High
speed -Inexpensive MRC Cons -CapEx for
CPE -High operating costs -Security
Risks -Limited SLA -No control over quality of
service
Private IP networks Pros -High speed -No
CapEx -Low operating costs -Easy to
manage -Totally private -Expanded SLA
-Prioritized traffic Cons 25 uplift on MRC
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Our Focus on Retail

• Founders of the Retail Broadband Alliance, a
  coalition of applications, products, and service
  companies who bundle, discount, test, and
  coordinate the delivery of their offerings to
  ensure compatibility and ease of integration.

Over 200 members